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AdvancedTested

Which Service Is Actually Paying the Bills? (Profit per Hour by Service)

ROLE: You are a hard-nosed small business analyst who works with local service businesses (salons, groomers, spas, studios, repair shops, cleaners). You know owners usually judge services by price or by how busy they keep everyone, and that the real number is profit per hour of hands-on time. Your job: do the math honestly, show your work, and give me three plain decisions I can act on this month. INPUTS (fill in what you know; leave a blank empty rather than guess): - Business: {business} (e.g., Bark Avenue Grooming, a dog and cat grooming salon on N Bell Blvd in Cedar Park, TX) - The month these numbers cover: {month} - For each service: name, price (or average price actually charged), how many I sold that month, hands-on minutes per job, and supplies per job in dollars: {service list} - What one hour of staff time costs me, wages plus taxes (or leave blank): {labor cost per hour} - How many working hours my team has in a typical month: {capacity hours} - Services that bring in new customers or lead to other sales, even if they earn less: {door openers} - Anything I refuse to change (a service my regulars love, a price I promised): {limits} - How price-sensitive my customers are, in my own words: {price sensitivity} PROCESS: 1. The Table: for every service, show revenue (price x count), profit per job (price minus supplies, and minus labor if {labor cost per hour} is given), profit per hour (profit per job divided by hands-on hours), share of total revenue and share of total hands-on hours. Rank by profit per hour. 2. Where the Hours Go: name any service whose share of hours is clearly bigger than its share of revenue, and say in one sentence what that costs me in plain dollars per month. 3. Push This One: the service with the best profit per hour that I can realistically sell more of. Give two ways to sell more of it without discounting (an upsell line at checkout, a bundle, a booking-page change) and the line to say. 4. Reprice This One: the weakest service by profit per hour that I still want to keep. Show the price that would bring it up to my average profit per hour, then a smaller step if that jump is too big for {price sensitivity}. Then run the "what if some leave" check: if 1 in 6 of those customers left at the new price, compare the old and new monthly profit, and say what the freed-up hours are worth if I fill them with the service from step 3. 5. Drop or Keep: only recommend dropping a service if it loses money per hour after costs, or if it is far below everything else and is not in {door openers} or {limits}. If nothing qualifies, say so plainly. Don't drop something just to have an answer. 6. Fix the Time, Not Just the Price: two ideas to cut hands-on minutes on the weakest service (a prep step, a maintenance schedule, a booking rule) and how many minutes each might save, labeled as estimates. 7. What To Watch Next Month: three numbers to track, and the one sign that my decision was wrong. OUTPUT FORMAT: Headings exactly: The Table, Where the Hours Go, Push This One, Reprice This One, Drop or Keep, Fix the Time, What To Watch Next Month. Put the table in a simple grid with dollars rounded to the nearest dollar and profit per hour to the nearest 10 cents. QUALITY CHECKS (run before answering): - Use only my prices, counts, minutes and costs. Never invent a service, a price or a customer count. - Show the formula once (profit per hour = (price - supplies - labor) / hours) and recheck every row's math before answering. - Revenue shares and hour shares should each add up to about 100%. - If {labor cost per hour} is blank, say that profit per hour here means "before paying staff," and compare services to each other only. - If any input is missing for a service, leave that row out of the ranking and say what's missing. - Label every guess (customer loss, minutes saved) as an estimate, never a fact.

Tip: fill in the {brackets}

Swap every highlighted bit for your real details before you paste. The more specific you are, the less generic the answer.

What it does

Takes a month of sales counts and prices for each service, the hands-on time each one takes and its rough supply cost, then calculates what every service really earns per hour of your team's time. You get a ranked table, the share of revenue versus the share of hours each service eats, one service to push in January, one to reprice (with the math for a price that fixes it and what happens if some customers leave), and an honest call on whether anything should be dropped.

When to use it

Run it before you set January prices or plan January promos, using last month's numbers. Pairs with New Year Price Check (should I raise prices?) and January Booking Forecast (when will I be slow?). This one answers the question underneath both: which work is actually worth filling the calendar with.

Example result

Example inputs (the salon's name, address and posted estimate prices for 20-49 lb dogs come from its own website, checked Oct 28, 2026; the counts, minutes, supply costs, the average full groom price and everything else below are made-up samples for this test, not the salon's real numbers): - Business: Bark Avenue Grooming, 1406 N Bell Blvd, Cedar Park, TX - Month (sample): October 2026, medium dogs (20-49 lb) only - Service list (counts, minutes and supplies are samples): - Bath package, $55, 80 sold, 60 minutes, $6 supplies - Trim and tidy, $80 (middle of the posted $75-$85), 50 sold, 90 minutes, $7 supplies - Full groom, $95 average charged (posted "$85 and up"), 40 sold, 150 minutes, $9 supplies - Doodle/poodle full groom, $105, 30 sold, 180 minutes, $10 supplies - Labor cost per hour: (left blank) - Capacity hours (sample): 360 groomer hours a month - Door openers (sample): bath package - Limits (sample): none - Price sensitivity (sample): "regulars will take a small bump, new people shop around" Example output (from a test run of the prompt above, trimmed): The Table (profit per hour here means before paying staff, since labor cost was left blank) | Service | Revenue | Profit per job | Profit per hour | Share of revenue | Share of hours | | Bath package | $4,400 | $49 | $49.00 | 29% | 23% | | Trim and tidy | $4,000 | $73 | $48.70 | 26% | 22% | | Full groom | $3,800 | $86 | $34.40 | 25% | 29% | | Doodle/poodle full groom | $3,150 | $95 | $31.70 | 21% | 26% | Total: $15,350 revenue, $13,860 profit before staff, 345 hands-on hours. Where the Hours Go Doodle grooms bring in 21% of revenue but take 26% of the hours. Every 3-hour doodle groom earns about $95; the same 3 hours spent on bath packages earns about $147. Push This One Trim and tidy: it earns almost exactly what a bath does per hour, and every bath customer is already in the chair. At checkout: "Want us to tidy up the face and feet next time? It's $80 and it keeps the full groom further away." Reprice This One Doodle/poodle full groom. Your average across all services is about $40.20 an hour ($13,860 profit over 345 hours). To match it, the doodle groom would need to be about $130. If that's too big a jump for new customers, a smaller step is $120, which earns $36.70 an hour. What if some leave (estimate): at $130, if 5 of 30 leave, doodle profit goes from $2,850 to $3,000, and the 15 freed hours are worth about $735 more as bath packages. Drop or Keep Keep everything. Nothing here loses money per hour, and the bath package is your door opener. Fix the Time Offer a doodle maintenance plan every 4 to 6 weeks (estimate: saves 20 to 30 minutes per groom on fewer mats). Ask for coat condition when people book so long dematting jobs get the right slot. Note: this example shows what the prompt produces. The salon's name, address and posted price ranges are from its own website; every count, minute, cost and recommendation is a test sample, not the salon's real business.

FAQ

What numbers do I need?

One month of sales counts and prices per service, roughly how much hands-on time each takes, and a rough supply cost.

Does it tell me to drop services?

It gives an honest call on whether anything should go, along with one service to push and one to reprice, with the math shown.

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